Budget Service in financial strife

Press, 22 July 1980, Page 4

Budget Service in financial strife

Financial difficulties may force the Household Budget and Advisory Service in Christchurch to close in December.

The Service has had §6600 in grants cut this year from the Metropolitan Grants Committee and the Lottery Control Board, money that it relied on for its day-to-day existence.

The chairman of the Service’s management committee (Mr M. F. Rogers) said that unless substantial funds were forthcoming in the next few. months, the Service would have no choice but to close.

"Ideally, we would like some sponsors, perhaps several firms, to pick up our tab and leave us free to get on with .the work. It could be one firm with SlO,OOO or 10 firms with $1000.”

“Everybody praises the work of the" Service, but no-one is doing anything to help. We need SI 0,000 a year to keep going, but we have no foreseeable income committed from any source," Mr Rogers said. People were under the misapprehension that they had plenty, of funds. The Metropolitan Grants Committee had based its decision not to allocate any funds this year on the Service’s bank balance of $7OOO in January he said. ‘‘They conveniently overlooked the fact that this money was all we bad to last us for the coming year, which ends next June.” The Budget Adivsory Service has run in Christchurch for 14 years, starting on a voluntary part-time basis and expanding in 1978 io include the services of a full-time secretary-organ-iser, Mr J. McGuire.

Since' the advent of a full-time helper the Service has been able to give continuity of advice to clients and allowed them to help more people before they get into desperate financial situations. They have also established voluntary agencies at Aranui-Wainoni, kaiapoi, Hornby, and independent branches at Rangiora and Greymouth. "We are not a fly-by-night organisation and have considerable credibility with companies who heave a sigh of relief when we telephone and say, ‘Hold back,; the debt is in our hands.’ ‘busness is booming* unfortunately,” Mr Rogers said. A possible solution to the Service’s funding problem could lie in a scheme where it received a percentage of the debts it collected.

The Service collected $60,000 in debts for six main Christchurch stores alone, through helping people solve their financial difficulties, last year.

It is now considering approaching the Retailers Association with the idea of taking a percentage (probably 10 per cent) ot the debts it recovers for those Christchurch businesses. ' , . Debts recovered for Government agencies by helping clients who are in debt to the Housing Corporation, the M.E.D.. and the Post Office — had also produced some surprising figures. Mr Rogers said. Last year, the Service recovered a total of $46,129 for those government agencies from 245 clients. “In some instances, the

Housing Corporation has sent potential homeowners to us to see if they • can afford to take out a mortgage. That is just not on,” said Mr Rogers. The Service receives no direct government asssitance and depends on the generosity of grants from "organisations for its yearly revenue. Last year, Mr McGuire, a management committee, and a staff of 70 volunteer advisors had 120 families in their care each weeek. A total of 379 families in financial difficulties, with debts totalling more than $340,000. were dealt with, said Mr Rogers. ’